From IDS Pensions Bulletin 201, Dec/Jan 2007

Company news

• Aga Foodservice Group scheme incorporates tax regime changes
• Court of Appeal rules in favour of the trustees of the Steria Management Plan
• Government delays proposals for local government scheme changes

Regulatory round-up

• Age Discrimination Regulations: update
• Pensions Bill introduces State pension changes

Average lump sum payment is £12,855

In our latest analysis of the reports and accounts of 155 occupational pension schemes we have found that the weighted average retirement lump sum paid to 60,141 retiring active members and deferred pensioners is £12,855. The median lump sum payment is £12,333. Also, 65 per cent of schemes reported that they had members fully commuting pensions on the ground of triviality.

Will personal accounts lead some firms to level down?

The ACA’s 2006 Pension Trends in Smaller Firms Survey has found that the most common forms of pension provision made by small firms are group personal pensions and stakeholder schemes. It has also found some evidence that firms will consider levelling down if the Government’s personal accounts are introduced.

Comment

Vivien Cockerill, a partner at Wragge & Co LLP, looks at the Pensions
Regulator’s first trusteeship survey and concludes that it will be a useful
benchmarking tool for trustee performance.